Sec.

1001.735-29 Penalties for violation.

Confidentiality

statements.

1001.735-30

of employees'

1001.735-31

Effect of employees' statements on other requirements.

AUTHORITY: E.O. 11222, 3 CFR, 1964-1965 Comp.; 3 CFR 735.104.

SOURCE: 37 F.R. 7312, Apr. 13, 1972, as amended at 37 F.R. 7883, Apr. 21, 1972.

Subpart A-General Provisions § 1001.735-1 Purpose.

The maintenance of the highest standards of honesty, integrity, impartiality, and conduct by Government employees and special Government employees is essential to assure the proper performance of the Foundation's business and the maintenance of confidence by citizens in their government. The avoidance of misconduct and conflicts of interest on the part of employees through informed judgment is indispensable to the maintenance of these standards. To accord with these concepts, this part sets forth the Foundation's regulations prescribing standards of conduct and responsibilities for its employees, and requires statements reporting employment and financial interests.

§ 1001.735-2 Definitions. As used in this part:

(a) "The Foundation" and "Agency" mean the Inter-American Foundation.

(b) "Employee" includes anyone serving in the Agency as:

(1) A person appointed by the President and confirmed by the Senate to a position in the Agency;

(2) A person appointed by the Board of Directors;

(3) A person appointed by the President of the Foundation or by his designee to a position in the Agency;

(4) A special Government employee. (c) "Regular officer or employee" means an employee as defined in paragraph (b) (1), (2), or (3) of this section.

(d) "Special Government employee" means a person who is retained, designated, appointed, or employed to perform for the Agency, with or without compensation, for not to exceed 130 days during any period of 365 consecutive days, temporary duties either on a fulltime or intermittent basis.

(e) "Member of an employee's family" means a spouse, minor child, or other member of an employee's immediate household. For the purpose of these regulations, "member of an employee's immediate household" means those blood relations who are resident in the employee's household.

(f) "Counselor" means the Agency's Counselor on Ethical Conduct and Conflicts of Interest. The Counselor for the Foundation will be the General Counsel of the Agency; the Deputy Counselor will be the Deputy General Counsel.

Subpart B-Standards of Conduct § 1001.735-10 General.

(a) All employees of the Foundation are required to conduct themselves in such a manner as to create and maintain respect for the Foundation and the U.S. Government; to avoid situations which require or appear to require a balancing of private interests or obligations against official duties; to be mindful of the high standards of integrity expected of them in all their activities, both personal and official; and to conform with the standards of conduct and with the applicable statutes, rules, and regulations governing their activities. Particularly, an employee shall avoid any action, whether or not specifically prohibited, which might result in, or create the appearance of:

(1) Using public office for private gain;

(2) Giving preferential treatment to any organization or person;

(3) Impeding Government efficiency or economy;

(4) Losing complete independence or impartiality of action;

(5) Making a Government decision outside official channels;

(6) Affecting adversely the confidence of the public in the integrity of the Government;

(7) Using his Government employment to coerce, or give the appearance of coercing, a person to provide financial benefit to himself or another person, particularly one with whom he has family, business, or financial ties.

(b) An officer or employee of another Federal agency who is assigned or detailed to the Foundation shall adhere to the standards of conduct applicable to employees as set forth in this part. § 1001.735-11 Statutes, rules, and regulations governing conduct of employees.

(a) The "Code of Ethics for Government Service" set forth by the Legislative Branch in House Concurrent Resolution 175, passed in 1958; the "Standards of Ethical Conduct for Government Officers and Employees" set forth by the President of the United States in Executive Order 11222, dated May 8, 1965, and the regulations issued by the Civil Service Commission pursuant to this Executive order (5 CFR Part 735); and other statutes, rules, and regulations governing conduct of employees, including the Foundation regulations; shall govern Foundation employees in their service to the Government.

(b) Conflict of interest statutes: The provisions of 18 U.S.C. 203, 205, 207, 208, and 209 prohibiting conflicts of interest between an employee's Government duties and his outside activities are summarized in specific sections of this Part 801.

(c) Miscellaneous statutory provisions: In addition to the various provisions referred to above, Foundation employees must observe the following:

(1) Chapter 11 of title 18, United States Code, relating to bribery, graft, and conflicts of interest, as appropriate to the employees concerned.

(2) The prohibition against lobbying with appropriated funds (18 U.S.C. 1913). (3) The prohibition against striking against the Government (5 U.S.C. 7311, 18 U.S.C. 1918).

(4) The prohibition against the employment of a member of a Communist organization (50 U.S.C. 784).

(5) The prohibitions against: (i) The disclosure of classified information (18 U.S.C. 798, 50 U.S.C. 783); (ii) the disclosure of confidential information (18 U.S.C 1905); and (iii) the disclosure of privileged information to be withheld under the exemptions of the Public Information Section of the Administration Procedures Act (5 U.S.C. 552).

(6) The provision relating to the habitual use of intoxicants to excess (5 U.S.C. 7352).

(7) The prohibitions against the misuse of a Government vehicle (31 U.S.C. 638a(c)).

(8) The prohibitions against the misuse of the franking privilege (18 U.S.C. 1719).

(9) The prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

(10) The prohibition against fraud or false statement in a Government matter (18 U.S.C. 1001).

(11) The prohibition against mutilating or destroying a public record (18 U.S.C. 2071).

(12) The prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(13) The prohibitions against (i) embezzlement of Government money or proprety (18 U.S.C. 641); (ii) failing to account for public money (18 U.S.C. 643); and (iii) embezzlement of the money or property of another person in the possession of an employee by reason of this employment (18 U.S.C. 654).

(14) The prohibition against unauthorized use of documents relating to claims from or by the Government (18 U.S.C. 285).

(15) The prohibitions against political activities in subchapter III of chapter 73 of title 5, United States Code, and 18 U.S.C. 602, 603, 607, and 608.

(16) The prohibition against an employee acting as the agent of a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219).

(17) The prohibition against the employment of an individual convicted of felonious rioting or a related offense (5 U.S.C. 7313).

(18) The prohibition against a public official's appointing or promoting a relative, or advocating such an appointment or promotion (5 U.S.C. 3110).

(19) The prohibition against selfdealing with a private foundation (26 U.S.C. 4941, 4946). "Self-dealing" is defined in the statute to include certain transactions involving an employee's receipt of pay, a loan, or reimbursement for travel or other expenses from, or his sale to or purchase of property from, a private foundation.

§ 1001.735–12 Outside employment and other activities.

(a) An employee shall not engage in outside employment or other outside activity not compatible with the full and proper discharge of the duties and responsibilities of his Government employment. Incompatible activities include but are not limited to:

(1) Acceptance of a fee, compensation, gift, payment of expense, or any other thing of monetary value in circumstances in which acceptance may result in, or create the appearance of, conflicts of interest; or

(2) Outside employment which tends to impair his mental or physical capacity to perform his Government duties and responsibilities in an acceptable manner.

(b) A regular employee shall not receive any salary or anything of monetary value from a private source as compensation for his services to the Government (18 U.S.C. 209). This section does not apply to special Government employees nor does it prevent a regular officer or employee from (1) continuing his participation in a bona fide pension plan or other employee welfare or benefit plan maintained by a former employer or (2) receiving payments or accepting contributions, awards, or other expenses in accordance with chapter 41 of title 5, United States Code, relating to employee training.

(c) Employees are encouraged to engage in teaching, lecturing, and writing that is not prohibited by law or regulations. However, an employee shall not, either for or without compensation, engage in teaching, lecturing, or writing (including teaching, lecturing, or writing for the purpose of the special preparation of a person or class of persons for an examination of the Civil Service Commission or Board of Examiners for the Foreign Service) that depends on information obtained as a result of his Government employment, except when that information has been made available to the general public or will be made available on request, or when the President

gives written authorization for use of nonpublic information on the basis that the use is in the public interest.

(d) This section does not preclude an employee from:

(1) Participation in the activities of national or State political parties not proscribed by law;

(2) Participation in the affairs of or acceptance of an award for a meritorious public contribution or achievement given by a charitable, religious, professional, social, fraternal, nonprofit educational and recreational, public service, or civic organization; or

(3) Outside employment otherwise permitted under these regulations.

§ 1001.735-13 Gifts, entertainment, and favors.

(a) (1) An employee shall not receive or solicit, directly or indirectly, for himself or persons with whom he has family, business, or financial ties, anything of economic value as a gift, gratuity, loan, entertainment, or favor, which might reasonably be interpreted by others as affecting his independence or impartiality, from any person, corporation, or group, if the employee has reason to believe that the entity:

(i) Has or is seeking to obtain contractual or other business or financial relationships with the Agency;

(ii) Conducts operations or activities which are regulated by the Agency; or

(iii) Has interests which may be substantially affected by the employee's performance or nonperformance of his official duty.

(2) The following exceptions are permitted for all employees:

(i) Acceptance of things of economic value arising from obvious family or personal relationships (such as those between the employee and the parents, children, or spouse of the employee) when the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors;

(ii) Acceptance of food and refreshments of nominal value on infrequent occasions in the ordinary course of a luncheon or dinner meeting or other meeting or on a project tour where an employee may properly be in attendance;

(iii) Acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans; and

(iv) Acceptance of unsolicited advertising or promotional material, such as pens, pencils, note pads, calendars, and other items of nominal intrinsic value.

(b) An employee shall not solicit a contribution from another employee for a gift to an official superior, or accept a gift from an employee receiving less pay than himself (5 U.S.C. 7351). However, this paragraph does not prohibit a voluntary gift of nominal value or a donation in a nominal amount made on a special occasion such as marriage, illness, or retirement.

(c) An employee shall not accept a gift, present, decoration, or any other thing from a foreign government unless authorized by Congress as provided by the Constitution, 5 U.S.C. 7342, and the regulations in Part 3 of this Title 22 ("Acceptance of Gifts and Decorations from Foreign Governments").

(d) Neither this section nor § 801.73512 preclude an employee from receipt of bona fide reimbursement, unless prohibited by law, for expenses of travel and such other necessary subsistence as is compatible with this part and for which no Government payment or reimbursement has been made. However, this paragraph does not allow an employee to be reimbursed, or payment to be made on his behalf, for excessive personal living expenses, gifts, entertainment, or other personal benefits, nor does it allow an employee to be reimbursed by a person for travel on official business under Agency orders.

§ 1001.735-14 Financial interests.

(a) Neither a regular nor a special Government employee may participate in his governmental capacity in any matter in which he, his spouse, minur child, associate or organization with whom he has a business relationship, or person or organization with whom he is negotiating for employment, has a financial interest (18 U.S.C. 208). Such an employee shall not (1) have a direct or indirect financial interest that conflicts substantially, or appears to conflict substantially, with his Government duties and responsibilities; or (2) engage in, directly or indirectly, a financial transaction as a result of, or primarily relying on, information obtained through his Government employment.

(b) An employee may be granted exemption from these restrictions provided: (1) He first advises the President of the

nature and circumstances of the particular matter and makes full disclosure of the financial interest, and (2) he receives in advance a written determination by the President that the outside financial interest is deemed not substantial enough to have an effect on the integrity of his services.

(c) This section does not preclude an employee from having a financial interest or engaging in financial transactions to the same extent as a private citizen not employed by the Government so long as it is not prohibited by law, Executive Order 11222, this section, or these Agency regulations.

An employee shall not directly or indirectly use, or allow the use of, Government property of any kind, including property leased to the Government, for other than officially approved activities. An employee has a positive duty to protect and conserve Government property, including equipment, supplies, and other property entrusted or issued to him. § 1001.735-16 Misuse of information.

For the purpose of furthering a private interest, an employee shall not, except as provided in § 801.735-12, directly or indirectly use, or allow the use of, official information obtained through or in connection with his Government employment which has not been made available to the general public.

§ 1001.735-17 Indebtedness.

An employee shall pay each just financial obligation in a proper and timely manner, especially one imposed by law such as Federal, State, or local taxes. For the purpose of this section, a "just financial obligation" means one acknowledged by the employee or reduced to judgment by a court, and "in a proper and timely manner" means in a manner which the Agency determines does not, under the circumstances, reflect adversely on the Government as his employer. In the event of dispute between an employee and an alleged creditor, this section does not require an agency to determine the validity or amount of the disputed debt.

cial to the Government.

An employee shall not engage in criminal, infamous, dishonest, immoral, or notoriously disgraceful conduct, or other conduct prejudicial to the Government. Subpart C-Procedures

General information on statutes, rules, and regulations governing the conduct of employees may be obtained from the Office of the General Counsel. Specific information may be obtained from the United States Code, from the Federal Personnel Manual, and from the Foundation regulations, all of which are available in the Office of the General Counsel. A copy (or a summary) of the Foundation regulations will be furnished to each employee in accordance with the Civil Service Regulations (5 CFR Part 735). Clarification of standards of conduct and related laws, rules, and regulations and advice on their applicability to individual situations may be obtained from the Counselor or Deputy Counselor for the Agency.